Online CD (Certificate of Deposit)

• What is a Certificate of Deposit (CD)?
  CDs are similar to savings accounts, but they are set to a fixed term (usually ranging from one month to ten years) and a fixed interest rate. It is expected that a CD be held to the end of the term, at which time the money may be withdrawn with the accrued interest. Early withdrawals of the principal balance may result in a fee, so ensure you will not need access to these funds for the term of the account before opening your CD.
• What is APY?

  Annual Percentage Yield (APY) expresses an annual rate of return taking into account the effect of compounding.

  Find out more about Annual Percentage Yield (APY).

• What is compound interest?
  Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest from that moment on.
• What is interest rate?
  An interest rate is the rate at which a financial institution agrees to pay you back for holding your money.
• Can I add additional funds to my certificate of deposit account?

  No, once your CD account is opened you cannot add additional funds to the account. After your CD account reaches maturity, you will have a 10-day grace period where you can add additional funds to your renewing CD account.

• What is the penalty for early withdrawal before CD maturity?

  If you withdraw the principal balance from your CD prior to maturity, you will be charged an early withdrawal penalty based on the term of your CD account.

  The applicable early withdrawal penalties are as follows:

  • Short-term CD (Less than one year) - 90 days interest on withdrawal amount, or half the remaining interest to be earned, whichever is greater. Plus a Transaction Penalty - $50
  • Long-term CD (one year or longer) - 180 days interest on withdrawn amount, or half the remaining interest to be earned, whichever is greater. Plus a Transaction Penalty - $50

  You can withdraw interest credited to your CD account before the maturity of the term of your CD without bank penalty.

• What happens when my CD matures?

  We will provide you with a CD Maturity notice 35 days prior to your CD account’s maturity date. The maturity date is the last day of your CD account’s term. There is a 10-day grace period that begins the day after your maturity date. During this 10-day grace period you have the following options:

  • Renew your CD with the same term or a different term (if renewing you can add additional funds);
  • Request a partial withdrawal of funds from your account without penalty; or
  • Close your CD by withdrawing all of the funds from your account without penalty

Have more questions? Get more answers in our full FAQs section.